(A)
Compensation cost limits for administrators shall be
based upon compensation costs for administrators who are not owners or
relatives of owners, as reported on the intermediate care facility cost report
from the calendar year preceding the fiscal year in which the rate is paid. The
compensation cost limits for administrators, excluding owners and relatives of
owners who are administrators, are calculated as follows:

(1)
The compensation
cost limits for administrators are calculated from the following intermediate
care facility cost reports excluding cost reports for providers of outlier
services as specified in rule
5123:2-7-10 of the
Administrative Code:

(a)
Cost reports for intermediate care facilities with a
December thirty-first end date; and

(b)
Desk-reviewed
and preliminarily determined to be allowable costs for intermediate care
facilities.

(2)
For each administrator, calculate the hourly rate from
schedule C-1 of the intermediate care facility cost report as follows:

(a)
Calculate the
number of days employed by subtracting the employment period beginning date
from the employment period ending date. Add one day to the number of days
calculated to account for total days worked as reported on the cost report;
and

(b)
Calculate the number of weeks worked by dividing the
number of days employed by seven as calculated under paragraph (A)(2)(a) of
this rule; and

(c)
Calculate the weekly compensation amount by dividing
the compensation amount as reported on the cost report by the number of weeks
worked as calculated under paragraph (A)(2)(b) of this rule;
and

(d)
Calculate the hourly rate by dividing the weekly
compensation amount as calculated under paragraph (A)(2)(c) of this rule by the
weekly hours as reported on the cost report.

(3)
Exclude any
administrator's hourly rate as calculated under paragraph (A)(2) of this rule
that is less than the federal minimum wage rate in effect at the end of the
cost reporting period.

(4)
Excluding administrators as determined in paragraph
(A)(3) of this rule, calculate the average annual facility administrator salary
for each facility from schedule C-1 of the intermediate care facility cost
report as follows:

(a)
For each administrator calculate the hours worked by
multiplying the weekly hours as reported on the cost report by the number of
days employed as calculated under paragraph (A)(2)(a) of this rule;
and

(b)
For all administrators as reported for each facility
total the following:

(i)
Number of days employed as calculated under paragraph
(A)(2)(a) of this rule; and

(iii)
Hours worked
as calculated under paragraph (A)(4)(a) of this rule; and

(c)
Calculate a weighted facility average weekly hours by dividing the sum of the
weighted weekly hours as calculated under paragraph (A)(4)(b)(iii) of this rule
by the total number of days employed as calculated under paragraph (A)(4)(b)(i)
of this rule; and

(i)
If
the weighted facility average weekly hours as calculated under paragraph
(A)(4)(c) of this rule is less than thirty-five hours per week, multiply the
total compensation amount as calculated under paragraph (A)(4)(b)(ii) of this
rule by forty; or

(ii)
If the weighted facility average weekly hours as
calculated under paragraph (A)(4)(c) of this rule is thirty-five hours or more
per week, multiply the total compensation amount as calculated under paragraph
(A)(4)(b)(ii) of this rule by the weighted facility average weekly hours as
calculated under paragraph (A)(4)(c) of this rule; and

(e)
Calculate the total salary per year by dividing the weighted facility
compensation amount as calculated under paragraph (A)(4)(d) of this rule by the
weighted facility average weekly hours as calculated under paragraph (A)(4)(c)
of this rule; and

(f)
Calculate the average annual facility administrator
salary by multiplying the total salary per year as calculated under paragraph
(A)(4)(e) of this rule by the number of days in a calendar year and dividing
the product by the total number of days employed as calculated under paragraph
(A)(4)(b)(i) of this rule.

(5)
Group the
average annual facility administrator salary for each facility calculated in
paragraph (A)(4)(f) of this rule into the following bed size categories based
on certified bed size at the end of the cost reporting period:

(6)
For each bed size category under paragraph (A)(5) of
this rule, calculate the compensation cost limit by summing the average annual
facility administrator salary as calculated under paragraph (A)(4)(f) of this
rule and dividing the total sum of all average annual facility administrator
salary by the number of records summed.

(B)
Reasonable costs
for compensation and compensation disallowances for administrators are the
facility's desk-reviewed, actual, allowable costs reported on schedule C-1 of
the intermediate care facility cost report subject to the applicable
compensation cost limits and audit by the Ohio office of medical
assistance.

(1)
For each individual administrator compensation reported on schedule C-1 of the
intermediate care facility cost report perform the following steps:

(a)
An individual
administrator compensation time slice is defined as follows:

(i)
The number of
days employed except when there is an overlap of an employment period for an
administrator working in a related facility; or

(ii)
When there is
an overlap of an employment period for an administrator working in a related
facility, the number of days within an individual administrator compensation
time slice for the administrator is:

(a) The number of days employed for the overlap of an
employment period when the administrator is working in the related facility
during the same period of time.

(b) The number of days employed preceding the overlapping
employment period.

(c) The number of days employed subsequent to the overlapping
employment period.

(b)
For each
administrator compensation time slice, calculate the following:

(i)
Acquire the
number of certified beds for the facility as of the end of the cost reporting
period from schedule A, line 2, column 1 of the intermediate care facility cost
report; and

(ii)
Acquire the number of certified beds for related
facilities that the administrator worked in, during the individual
administrator compensation time slice, as of the end of the cost reporting
period from schedule A, line 2, column 1 of the intermediate care facility cost
report; and

(iii)
Calculate the total number of certified beds by adding
the number of certified beds for the facility as determined under paragraph
(B)(1)(b)(i) of this rule and the number of certified beds for any related
facilities that the administrator worked in determined under paragraph
(B)(1)(b)(ii) of this rule; and

(a) If the administrator does not work in four or more related
facilities, use the total number of certified beds determined under paragraph
(B)(1)(b)(ii) of this rule to determine the appropriate compensation cost limit
determined under paragraph (A)(6) of this rule; or

(b)If the administrator works in four or more related
facilities, the compensation cost limit is the maximum for the bed size
category determined under paragraph (A)(6) of this rule; and

(v)
Acquire the allowance percentage from schedule C-1 of the intermediate care
facility cost report which shall not exceed one hundred-fifty per cent;
and

(vi)
Calculate the adjusted compensation cost limit by
multiplying the compensation cost limit determined under paragraph
(B)(1)(b)(iv) of this rule by the allowance percentage determined under
paragraph (B)(1)(b)(v) of this rule; and

(vii)
Calculate the
total number of days employed for each administrator by subtracting the
beginning date from the ending date for each time slice and adding one;
and

(ix)
Calculate the per cent of days allowed by dividing the
number of days in the individual administrator compensation time slice as
calculated under paragraph (B)(1)(b)(vii) of this rule by the total days in the
calendar year as determined under paragraph (B)(1)(b)(viii) of this rule;
and

(x)
Calculate the time slice adjusted compensation cost
limit by multiplying the per cent of days allowed as calculated under paragraph
(B)(1)(b)(ix) of this rule by the adjusted compensation as calculated under
paragraph (B)(1)(b)(vi) of this rule; and

(xi)
Acquire the
weekly hours in the individual administrator compensation time slice for the
appropriate time period from schedule C-1 of the intermediate care facility
cost report; and

(xii)
Acquire the related weekly hours in the individual
administrator compensation time slice for the appropriate time period from the
related facilities' schedule C-1 of the intermediate care facility cost report;
and

(xiii)
Calculate the total weekly hours in the individual
administrator compensation time slice by adding the weekly hours in the
individual administrator compensation time slice as determined under paragraph
(B)(1)(b)(xi) of this rule and the related weekly hours in the individual
administrator compensation time slice as determined under paragraph
(B)(1)(b)(xii) of this rule; and

(a) If the total weekly hours in the individual administrator
compensation time slice as calculated under paragraph (B)(1)(b)(xiii) of this
rule is less than thirty-five hours per week then the maximum weekly hours in
the individual administrator compensation time slice is forty; or

(b)If the total weekly hours in the individual administrator
compensation time slice as calculated under paragraph (B)(1)(b)(xiii) of this
rule is greater than or equal to thirty-five hours per week then the maximum
weekly hours in the individual administrator compensation time slice is the
total weekly hours in the individual administrator compensation time slice;
and

(xv)
Calculate the hours allocation percentage by dividing
weekly hours in the individual administrator compensation time slice as
calculated under paragraph (B)(1)(b)(xi) of this rule by the maximum weekly
hours as calculated under paragraph (B)(1)(b)(xiv) of this rule;
and

(xvi)
Calculate the final time slice adjusted compensation
cost limit by multiplying the time slice adjusted compensation cost limit as
calculated under paragraph (B)(1)(b)(x) of this rule by the hours allocation
percentage as calculated under paragraph (B)(1)(b)(xv) of this rule;
and

(xvii)
Calculate a daily salary amount for each administrator
by dividing the compensation amount by the number of days employed as reported
on schedule C-1 of the intermediate care facility cost report. For each time
slice, calculate the prorated administrator compensation amount by multiplying
the daily salary amount for each administrator by the number of days employed
in each time slice as calculated under paragraph (B)(1)(b)(vii) of this rule;
and

(xviii)
Calculate the individual administrator compensation
disallowance by subtracting the final time slice adjusted compensation cost
limit as calculated under paragraph (B)(1)(b)(xvi) of this rule from the
adjusted prorated administrator compensation amount as calculated under
paragraph (B)(1)(b)(xvii) of this rule. The result cannot be less than
zero.

(xix)
Calculate the final adjusted prorated administrator
compensation amount by subtracting the individual administrator compensation
disallowance as calculated under paragraph (B)(1)(b)(xviii) of this rule from
the adjusted prorated administrator compensation amount as calculated under
paragraph (B)(1)(b)(xvii) of this rule.

(a)
Acquire the
number of certified beds for the facility as of the end of the cost reporting
period from schedule A, line 2, column 1 of the intermediate care facility cost
report; and

(b)
Acquire the appropriate compensation cost limit for
the bed size category using the total number of certified beds determined under
paragraph (B)(2)(a) of this rule and the compensation cost limit determined
under paragraph (A)(6) of this rule; and

(c)
Establish the
allowance percentage as one hundred-fifty per cent; and

(d)
Calculate the
adjusted compensation cost limit by multiplying the compensation cost limit
determined under paragraph (B)(2)(b) of this rule by the allowance percentage
determined under paragraph (B)(2)(c) of this rule; and

(e)
Calculate the
total administrator allowable compensation by summing the compensation reported
on schedule C-1 of the intermediate care facility cost report for all
administrators and subtracting any disallowances calculated under paragraph
(B)(1)(b)(xviii) of this rule; and

(f)
Calculate the
overall facility administrator aggregate compensation disallowance by
subtracting the adjusted compensation cost limit as calculated under paragraph
(B)(2)(d) of this rule from the total administrator allowable compensation as
calculated under paragraph (B)(2)(e) of this rule. The result cannot be less
than zero.

(C)
If an
administrator works in one or more of the following direct care cost center
positions, the compensation earned for performing such duties may be expensed
directly to the direct care cost center. Compensation for an administrator
performing a direct care cost center function is allowable only for duties
which otherwise would require the employment of another individual. The portion
of the individual's total compensation paid by the intermediate care facility
that may be reported in the direct care cost center shall be determined by
multiplying the total compensation by the percentage of time the individual
spends performing the direct care duties. The intermediate care facility must
maintain records documenting the allocation of the individual's time to these
duties. Time studies conducted in accordance with the centers for medicare and
medicaid services publication 15-1, "Provider Reimbursement Manual" (revised
January 2005), available at http://www.cms.hhs.gov/manuals, shall be considered sufficient documentation of the
allocation of time. If it is found that the intermediate care facility has not
sufficiently documented the allocation of time, the cost associated with the
undocumented time will be reclassified back to the indirect cost center. Those
direct care cost center functions are: